Spring Surgical Hospital 4 Properties in Spring, TX

Northmarq is pleased to exclusively offer the opportunity to acquire the fee simple interest in a value-add surgical hospital asset located in Spring, TX (Houston MSA). The subject property is currently 28% occupied by Sterling Ridge Orthopaedics & Sports Medicine, Houston Asthma & Allergy Associates, and Apex Dental which provides a synergistic existing medical tenant mix. The remainder of the Property is currently vacant, including a 41,657 SF Surgical Hospital and 4 medical office suites. Each tenant is subject to a NNN lease with attractive rental escalations (see "Rent Roll" for more details). The Property currently has a Weighted Average Lease Term (WALT) of 0.94 years.
The hospital contains 4 treatment rooms (2 in surgical hospital, 2 in emergency department), 6 OR's, 12 in-patient beds, 2 pre-op rooms, 1 post-op room, 1 sterilization room, and several labs including a catheterization lab. The Property also contains an imaging room which includes lead and RD shielding. The Property is being offered below replacement cost which creates immense opportunity for investors. According to RevistaMed, the average construction cost for a medical outpatient building in 2023 was $498/SF and $912/SF for in-patient Hospitals. With the vacant surgical hospital component of the Property, potential investors have the chance to create immense value from the potential leasing of the surgical space at a NNN market rental rate of $35/SF.
The Property is advantageously located in a strong retail and medical corridor with nearby retailers such as Lowe's, Sprouts, Kroger, Chick-fil-a, and HEB and nearby healthcare facilities such as Memorial Hermann Convenient Care Center, St. Luke's Health - Springwoods Village Hospital, and HCA Houston Healthcare Northwest Hospital. The Property is also located within the Houston MSA which is the 5th largest in the United States with strong growth metrics. Furthermore, the Property greatly benefits from the strong, affluent surrounding area. In fact, within a 5-mile radius of the Subject Property there are 235,398 residents with an average household income of $138,000. The Property sits directly off Kuykendahl Rd and FM 2920 which each see an average of 24,000 vehicles per day.